When is the monthly Royalty Fee due for a Sonesta Select Sonesta Essential hotel?

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the monthly Royalty Fee is due on or before the 20th day of each month. This payment schedule applies beginning on the earlier of the hotel's opening date or the date the franchisee begins operating the hotel under the Sonesta Select Sonesta Essential marks. The royalty fee covers the preceding calendar month, and this obligation extends through the final month of the franchise term.

The Royalty Fee is calculated as 5% of Gross Rooms Revenue, which includes all revenue attributable to the rental of guest rooms, whether paid in cash, check, credit card, or other forms of credit. This also encompasses guaranteed no-show revenue and revenue from reservations canceled outside the hotel's cancellation policy. Gross Rooms Revenue excludes charges for food and beverage, vending machine receipts, telephone charges, guest room rebates, gratuities, and applicable taxes.

Sonesta Select Sonesta Essential requires that Royalty Fees be paid via ACH in U.S. dollars. Franchisees must ensure that their designated account has sufficient funds to cover the withdrawals on the due dates. If a due date falls on a national holiday or weekend, the payment will be debited on the subsequent business day. This mandatory ACH payment system ensures timely and consistent remittance of fees to Sonesta Select Sonesta Essential.